When given a choice between making a contribution to a Roth IRA or to a nondeductible traditional IRA,the taxpayer should choose the Roth IRA.

Question

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The contributions to a Roth IRA are made with after-tax dollars, which means that the withdrawals from the account during retirement are tax-free. Contributions to a nondeductible traditional IRA, on the other hand, are made with after-tax dollars, but the withdrawals during retirement are subject to taxes. Therefore, it is generally more beneficial for taxpayers to choose a Roth IRA.

When Given a Choice Between Making a Contribution to a Roth